View 8 & 2 Differences
This report lists the differences between Chargeback Reversals (code 8’s) and Credit Memos (code 2’s). The 8’s & 2’s occur when the vendor did not issue credit equal to the amount of chargeback. This report lists the most recent recs first, and as a result, the recs for which you have not processed a credit memo will appear first.
You must review this report monthly to protect the margin and shrink in your store because:
- Cost differences listed in this report may impact margin.
- Retail differences listed in this report may impact shrink.
Refer to the chart below for guidelines on what can cause a cost difference and a retail difference.
| Cost differences may be due to: | Retail differences may be due to: |
|---|---|
Vendor owing additional credits for the return/chargeback. The merchandise/text books may have been returned by the vendor (return of return). Vendor may have charged return penalties or restocking fees. The chargeback may have been prepared in error. | An error that was made in chargeback preparation (e.g. not all the books listed in the chargebacks were shipped). Books that were received back by the store (return of return). |
If the reason for the difference is not listed above, adjust the retail inventory by recording a markdown or by recording a retail correction. Record markdowns in the Markup/Markdown program. To record a retail correction, complete a Retail Correction Worksheet.
